Borralha Tungsten Project PEA: C$473M NPV, 48.8% IRR
Allied Critical Metals Corp.'s Borralha Tungsten Project in Portugal, northern Portugal, 60km east of Braga, 100km northeast of Porto has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$473M, an after-tax IRR of 48.8%, and initial capital of C$124M. The mine plan runs 11 years at about 1708 t WO₃ per year.
Allied Critical Metals Corp.'s Borralha Tungsten Project has reported Preliminary Economic Assessment (PEA) results for the tungsten (wo₃) project in Portugal, northern Portugal, 60km east of Braga, 100km northeast of Porto. The study headlines an after-tax net present value of C$473M at a 8% discount rate. It reflects Allied Critical Metals Corp.'s (ACM.CN) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$473M using a 8% discount rate. After-tax IRR is 48.8%. Initial capital expenditure is estimated at C$124M. The study models a payback period of 2.2 years. All-in sustaining costs are pegged at 303 USD/mtu. Economics are based on Base ~US$704/mtu, Medium US$1,000/mtu, High US$1,500/mtu.
Production and mine plan. The project envisions an underground operation. Life of mine is 11 years. Average annual production is approximately 1708 t WO₃. Average head grade is 0.20% WO₃. Metallurgical recovery averages 75%.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Allied Critical Metals Corp.'s technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 1.0 Mt | 0.22% WO₃ | 2,088 t WO₃ |
| Indicated | 12.0 Mt | 0.21% WO₃ | 24,974 t WO₃ |
| Measured & Indicated (M+I) | 13.0 Mt | 0.21% WO₃ | 27,062 t WO₃ |
| Inferred | 7.7 Mt | 0.18% WO₃ | 13,878 t WO₃ |
Our Analysis
This project delivers a top-quartile 48.8% after-tax IRR, well above the 15-20% hurdle typical for single-asset developers, and a 2.2-year payback that reduces execution risk. The C$124M initial capex is capital-light at 26% of NPV, limiting the dilution risk that often plagues developers. However, the 8% discount rate used to calculate the C$473M NPV is low, which flatters the present value; a higher rate would compress that figure meaningfully.
The NPV stands at roughly 1.1x market cap, which can signal either that the market has not fully priced the asset or that it is discounting risks around financing, permitting, or the 11-year mine life in a jurisdiction with a mixed mining track record. The study's price assumptions span a wide range, with the base case at US$704/mtu—a level that drives the headline returns but carries sensitivity to tungsten price cycles. The key watch-item is securing project finance in a single-asset structure, as any cost overrun or permitting delay would fall entirely on equity holders given the junior's balance sheet.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.